Low-income seniors must wait for local action on tax breaks

While two tax breaks took effect statewide in January, the seniors' amendment only promised to "allow counties and municipalities to grant" the exemption.

ANDREW GANTSTAFF WRITER

When Florida voters went to the ballot box last year, they faced 11 proposed amendments to the state constitution. They voted down most of them — except three. Those three winners were all property-tax breaks, each devoted to people who might need a hand up: an expanded number of disabled veterans, spouses of deceased veterans and first responders, and low-income seniors. Six months later, one of those groups has yet to see the tax breaks become real in Volusia, Flagler or elsewhere: the seniors. Unlike the other two amendments, the low-income 65-and-up tax break won't actually occur anywhere in Florida unless local governments take action to implement it. John Thomas, a 74-year-old retiree in Port Orange, is wondering why Volusia and its cities haven't done that. "For some seniors, this is very important," Thomas said recently. "They're at poverty level; they're taking nothing but hits. It might make a difference for some people if they can stay in their homes, if they can eat chicken or dog food today, or get their meds." The tax break in Amendment 11 would make some seniors' homes exempt from property taxes. A 65-and-up homeowner with a total household income under $27,590, a house worth less than $250,000, and 25 years living there, would have the home's entire value exempt. While the other two tax breaks took effect statewide in January, the seniors' amendment only promised to "allow counties and municipalities to grant" the exemption. Some cities and counties have done that. Volusia and Flagler haven't yet. Volusia County Manager Jim Dinneen and County Attorney Dan Eckert said Volusia is exploring it. The County Council would have to approve the exemption with a supermajority vote. "There has been citizen inquiry of both the property appraiser's office and at least some county council members," Eckert said in an email. "I anticipate that after gathering data, staff will raise the issue with the county council and request its direction." The exemption was added to the June 6 council agenda just this week. "Neither the county nor the cities have done this, and they don't have to. It's an option," Flagler County Property Appraiser Jay Gardner said. "If the intent is to give something to someone, you shouldn't make it so difficult. I don't know of too many people who meet the age and income requirements and have lived in their house for 25 years. I've lived here for 35 years, but I've lived in a lot of different places." So in some cases, proving residency in one house for 25 years could be a difficult task. "My computer doesn't go back 25 years," Gardner said. "I would have to run a title search to prove someone has been in their home for that long." Volusia's city councils and commissions would also have to vote on the issue to offer the exemption on city taxes. In Port Orange, where Thomas lives, Vice Mayor Don Burnette has already asked to discuss it at a future meeting. "We probably want to have some idea about how it will impact our revenue, although this is a pretty tight window for someone to fit into to qualify," Burnette wrote in an email to City Manager Greg Kisela. Kisela responded that his staff would put together a report on the potential budgetary impact. The exemption has already passed in counties big and small around Florida. Lake County passed it. So did Miami-Dade, Lee and Hernando. Others have resisted. In February, the Marion County Board of County Commissioners voted it down 3-2. Many seniors were angry. Several attended another Marion commission meeting this past week, calling for passage of the tax break. The commission didn't hold another vote. It's estimated the exemptions would cost Marion about $160,000 per year. An estimate hasn't been figured in Volusia. Volusia and its cities do offer exemptions for low-income seniors already — up to a limit. The county, along with Daytona Beach, Deltona and Pierson, will exempt up to $50,000 for low-income seniors. All other cities except Oak Hill offer $25,000. Oak Hill offers $10,000. The School Board and hospital districts haven't enacted senior homestead exemptions. Flagler County offers an additional $50,000 for seniors on restricted incomes. The AARP hasn't exactly endorsed the new low-income exemption but has acknowledged it would help older people on fixed incomes. AARP Florida spokesman Dave Bruns said the organization tends to shy away from supporting tax breaks that only benefit people of a specific age — but in Florida, 1 in 4 seniors relies on Social Security for at least 90 percent of his or her income. "Those folks are in a tough situation," Bruns said. "The AARP's position is these issues are up for local governments to decide. We applaud the positive impacts these tax breaks can have on people who are really struggling." Thomas said his life won't hinge on the exemption, but others' might. He argued the popular support is already established: The amendment passed the state House and Senate unanimously, then won 61 percent of the statewide vote — 62 percent in Volusia, 63 in Flagler. Local governments "have a mandate from the voter to do the job, not to make a decision," Thomas said. "The decision's been made by the Legislature, and the decision's been made by the voter. We didn't ask these guys to decide, we asked them to implement the program." The local elected officials would have to approve and send an ordinance to the property appraiser by Dec. 1 for the added exemption to take effect next year.

Property tax breaks that passed

Voters approved three tax breaks as constitutional amendments in November. Amendments 2 and 9 went into effect in January. Amendment 11 requires county or city action.

— Amendment 2 expands a property tax break to all disabled veterans, not just those who lived in Florida when they enlisted.

— Amendment 9 gives property tax exemptions to spouses of service members and civilian first-responders who die in the line of duty.